United States Steel Corporation (X)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,451,000 | 19,458,000 | 17,816,000 | 12,059,000 | 11,608,000 |
| Total stockholders’ equity | US$ in thousands | 11,047,000 | 10,218,000 | 9,010,000 | 3,786,000 | 4,092,000 |
| Financial leverage ratio | 1.85 | 1.90 | 1.98 | 3.19 | 2.84 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,451,000K ÷ $11,047,000K
= 1.85
The financial leverage ratio of United States Steel Corp. has shown a decreasing trend over the past five years, decreasing from 3.19 in 2020 to 1.85 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. In 2021 and 2022, the ratio was relatively higher at 1.98 and 1.90, respectively, suggesting a higher level of debt compared to equity in those years. However, it is positive to note the continuous decline in the ratio, which reflects a strengthening financial position and reduced risk associated with high debt levels. Overall, the decreasing trend in the financial leverage ratio demonstrates improved financial stability and a more sustainable capital structure for United States Steel Corp.
Peer comparison
Dec 31, 2023